Board and Executive Compensation Governance

By: 3xcd  09-12-2011

Executive Performance Compensation

3 X CD aligns executive compensation with company performance using audited financial data. A Pay-for-Performance approach ensures protection of shareholder interest and compliance with corporate governance guidelines.

The CEO Compensation Audit tests compensation design; performance based compensation payout; and compares compensation to financial performance. If the plan is proven to be sound, recommendations will support this, otherwise alternate recommendations will be provided for consideration.

A CEO Compensation Audit can be expanded to assess pay-for-performance linkage of other executives within the executive team of the company.

Key Board Issues When Establishing Executive Pay Levels include:

  • Do we have the appropriate peer group(s)?
  • Should we use more than one peer group ?
  • Are we comparing pay for equivalently complex jobs?
  • Are we offering the appropriate incentive packages for our executives?
  • What are the real incentive trends in our market?
  • How do we retain our value while ensuring our shareholders are protected?

Other products and services from 3xcd


Board and Executive Compensation Governance - Advisory Investors

Institutional investors are comfortable with paying executives according to their level of performance but are outraged at paying for under-performing executives. Our independent approach to addressing executive pay-for-performance has become increasingly important to institutional investors. Institutional investors and large pension funds are becoming increasingly active in corporate governance issues.


Board and Executive Compensation Governance - comparitive fpa

The Coalition will also be encouraging companies to re-examine their compensation policies, their oversight of top management and the relationship of this to corporate performance.. X CD compares the audited financial data of competitive companies on multiple performance measures and provide this to our clients in a customized format for review.


Board Risk Assessment

In working with both Boards and institutional delivery of risk management and risk transfer, 3XCD has utilized its assessment vehicle to link the development of Board liability and Board risk management into assessment of risk developed by the Board of Directors. Board scrutiny has increased significantly and has developed the area of Board Risk Assessment and Board Risk Management.


Data Services

We provide this analysis and interpretations to back up our Data Services by providing rationale behind selection of peer group companies, financial comparison, actual wealth, and evaluated compensation data. X CD Data services can boost your firm's productivity and efficiency by providing you with the most concise, clear, and objective normalized financial data based on MD&A guidelines.


Performance Based Design

If the industry is performing poorly and we are the top performer, what questions do we need to ask or what direction should we take. As direction in the company changes, performance measures and performance targets may need to be modified. Company short-term, mid-term, and long-term performance drivers should relate to strategic direction. What are the appropriate performance hurdles and performance targets.